There are 2,387 families receiving the strong rent benefit that came into force in 2019.
Minister for Social Accommodation Roderick Galdes stated that this benefit is one of the strongest initiatives that has assisted thousands of families.
The revolution in social policy, said Minister Galdes, is that the initiatives we are taking are not only aimed at helping the family cope, but also at helping it move forward.
The Rent Benefit came into effect in preparation for the reform of residential rents. The Housing Benefit has replaced the previous old subsidy, which, according to Minister Galdes, in the absence of verified rental contracts, would have been granted blindly and would have given rise to abuse.
Today, instead of that subsidy, the benefit reaches up to €5,000 a year or €417 a month but the benefit provides different amounts to beneficiaries with different circumstances. The benefit is calculated according to the income of the family, the rent paid under the registered contract, and an amount is issued which ensures that the family does not pay more than 25% of its available income on rent.
Beneficiaries receive an average of €2,783 in annual benefits. In some cases, the Housing Authority covers up to 45% of the rent.
In a rapidly changing society, this benefit along with the new regulatory framework have helped to make the rental of adequate housing more suitable for the family, said Minister Galdes. In fact, out of the 2,387 beneficiaries, there are more than a thousand who are tenants living alone. There are 779 single parents with up to two dependent children and more than 374 couples with dependent children in their household.
Housing Authority CEO Leonid McKay explained the important link that exists between reducing the number of people in need of alternative housing and the preventive measures such as the rent benefit.
Mr McKay recalled how when residential rent reform came in, there was pressure to find a solution to affordability. Instead of introducing legislative controls, the government has chosen to create a stable and secure sector through the law and to use the benefit to help affordability.
A few months ago, the Housing Authority conducted a survey among the beneficiaries, and the results show that the majority of the families who are receiving the rent benefit feel that the amount they receive is sufficient.
Minister for Social Accommodation Roderick Galdes said that the government is no longer reactive in social services.
In fact, during the pandemic assistance in the rent deposit and in the payment of the first rent instalment was launched. The deposit in some cases, especially during the Covid-19 pandemic, would have been an impediment for low-income people who were forced to rent.
So far, 84 families have received this aid with an investment of €94,610 from the Housing Authority with an average of €1,200 per beneficiary.
“The government is not there to be a charitable institution. It is there to build social systems which do not leave anyone behind, but instead provide them the means to move forward on their own”, said Minister Roderick Galdes.
Photos: MSA
